Meacham has credibility in his analysis of Oakhill
Mahoning County Auditor Ralph Meacham’s financial analysis of Oakhill Renaissance Place should silence the critics who have been spewing nonsense ever since the county bought the former hospital complex. But it won’t.
That’s because the naysayers are parroting the opinions of Anthony M. Cafaro Sr., one of the most prominent businessmen in the Mahoning Valley.
Cafaro, retired president of the Cafaro Co., is identified in court papers as the mastermind of the conspiracy to derail the purchase of Oakhill Renaissance, the former Southside Medical Center in Youngstown.
Cafaro did not want the deal to go through because his company stood to lose the county’s Job and Family Services agency as a tenant. The JFS had occupied space in the Cafaro Co.-owned Garland Plaza for 19 years.
Meacham’s financial analysis of Oakhill vindicates government officials and community leaders who supported the purchase 10 years ago.
Although the county owes $11.4 million of the $15.2 million it borrowed to renovate the former hospital complex, the auditor is not sending up red flags.
“I don’t think it’s a burden that the county cannot maintain,” Meacham said Wednesday when he released his report. He pointed out that bond-rating agencies would certainly have issued warnings if they believed county government was overextended financially.
“We have debt capacity of $70 million,” Meacham said. “We could borrow another $70 million, if we wanted to.” However, the county auditor is not suggesting any such move.
“The county is fiscally solid right now,” he explained.
In other words, Oakhill Renaissance Place has not been the money pit that Cafaro and his supplicants have claimed.
Our forecast
In July 2006, after then-commissioners Anthony Traficanti and David Ludt voted to buy Oakhill, we had this to say:
“There are those who will be rooting for the commissioners to fail in this ambitious endeavor. That is a shame, because the commissioners have stepped up to save the Oakhill complex from certain deterioration and almost inevitable demolition if it were left unoccupied.”
“If commissioners are successful, they will not only save the county money – or at least break even on lease costs – but they will provide space at a reasonable cost for other government entities, will develop a real-estate asset of some value for the county and will help stave off blight on the near South Side.
“Certainly, success will not come easy, but guided by the professional building commission, the commissioners certainly have reason to be cautiously optimistic.”
It is important to note that while Traficanti, who is still a commissioner, and Ludt voted for the purchase, then-commissioner and now Youngstown Mayor John A. McNally voted no.
McNally has pleaded guilty to four misdemeanor charges stemming from his participation in the Cafaro-led criminal enterprise – a description from state prosecutors.
Although Oakhill Renaissance is half full, the rents paid by the tenants, which include JFS, Head Start and the Youngstown Health Department, just about cover the operational costs. Meacham said there is a shortfall of only $185,140 annually.
We have no doubt that the critics will attempt to discredit the auditor’s analysis by accusing him of playing politics. But truth be told, Meacham is one of the most apolitical officeholders in county government. He ran for office as a novice because another participant in the Oakhill criminal enterprise, Michael Sciortino, was on the verge of winning re-election as county auditor.
Sciortino has pleaded guilty to a felony and misdemeanor charges.
Meacham, who had a successful career as a certified public accountant in the private sector, came out of retirement to run for office. It wasn’t just his qualifications and his work experience – he served as the chief financial officer for the Pittsburgh Steelers – that impressed the voters. It was his honesty and his pledge to rebuild the credibility of the auditor’s office that won the day.
Given his intimate knowledge of the Oakhill Renaissance Place project, we are confident Meacham will work closely with Commissioners Traficanti, Carol Rimedio-Righetti and David Ditzler to develop a plan for attracting more tenants.